Day one: dogged by scandal

Facing charges … Craig Thomson leaving Wyong Court on Thursday. Police said he accepted what was said to him and did not argue. Photo: Mick Tsikas

Julia Gillard's extended election campaign hit major turbulence on its first full day following the spectacular arrest of the former Labor MP turned independent, Craig Thomson.

Mr Thomson, who was forced to resign from the Labor Party early last year, was arrested in his central coast electoral office at 1pm on Thursday and faces 150 charges, including theft and fraud, relating to the alleged misuse of entitlements when he was national secretary of the Health Services Union.

After an 18-month investigation, Victoria Police notified Mr Thomson in December that they had enough evidence to charge him, said the NSW fraud squad Detective Superintendent Col Dyson. The member for Dobell was then asked to surrender himself at the offices of the Victoria Police before Christmas.

Mr Thomson refused this offer, so NSW Police executed a warrant on behalf of their Victorian colleagues on Thursday.

''He's accepted what's been said to him. He hasn't argued,'' said Superintendent Dyson, who made the arrest.

Ms Gillard's minority government relies on the vote of Mr Thomson and those of a clutch of independents to maintain its working majority.

On Thursday the Prime Minister said she had no knowledge of Mr Thomson's arrest other than from media reports.

A spokesman from her office later stated Ms Gillard had been given no advance notice that police intended to move on the embattled MP.

''[Ms Gillard might] like to tell us whether she had any pre-warning in relation to this arrest and her decision to call the election date yesterday,'' Mr Abetz said.

He said that while it was important ''we constrain our comments'' while the matter was before the courts, it was right for the Coalition to pursue the question of the Prime Minister's judgment regarding Mr Thomson.

''She has been acting as the chief defence counsel for Craig Thomson now for a number of years,'' he said.

News of the arrest emerged while the Opposition Leader, Tony Abbott, was on his feet at the National Press Club.

He said it was important to be circumspect, given the legal proceedings, but used the opportunity to condemn Ms Gillard's role in the saga.

''The Thomson matter isn't just about Craig Thomson,'' he said.

''It's always been about the judgment of the Prime Minister - and I'm afraid the judgment of a prime minister who was running a protection racket for Craig Thomson for months and years, long after it was obvious that there were issues.''

The charges laid on Thursday relate to allegations that Mr Thomson improperly used Health Services Union funds to spend on prostitutes, air travel, entertainment and cash withdrawals of more than $100,000.

Mr Thomson was the union's national secretary from 2002 until his election to federal parliament in December 2007.

Representing himself in Wyong court on Thursday afternoon, Mr Thomson was given bail to appear in Melbourne Magistrates Court on February 6.

His bail conditions included not approaching anyone whom he has paid for sexual services, and notifying police if he intended to travel overseas or interstate, except to Canberra as part of his parliamentary duties.

''On legal advice I've been asked not to give a speech and as a politician that probably goes a little against the grain,'' he said.

Before leaving the court, Mr Thomson said, not for the first time, - that he would be ''vigorously defending these charges''.

He has given no indication he will resign from Parliament while the matter is before the courts.

''As I have said from the start I have done no wrongdoing and that is what will be found in this matter,'' Mr Thomson said.

Superintendent Dyson indicated that Mr Thomson remained a ''person of interest'' in the investigations by the NSW Police into allegations that he and the former head of the HSU East branch, Michael Williamson, received secret commissions by way of credit cards supplied to them by a major contractor to the union.